Welcome to our weekly newsletter where we provide an overview of the main US and UK indices, along with analyses of selected assets that are outperforming the market.
Let’s get into this week’s newsletter!
US & UK INDICES OVERVIEW
This week the strength in the US equity markets has continued, resulting in further all-time highs in the three main indices – S&P 500, Nasdaq and Dow Jones. This confluence of strength gives us confidence that the momentum we have seen since November will continue in 2024.
The S&P 500 closed the week at 4953, a gain of 1.4%. January delivered a gain of 1.6%, whilst the momentum is continuing into February with a gain to date of 2.3%. The index has gained 21% since the pullback in October and a gain of 41% since the October 2022 lows.
The bulls remain in control of the equity markets which aligns with our long term position.
We continue to see individual stocks perform well. Our portfolio currently compromises over 20 US stocks, including LLY, AMP and META. We have compounded these assets, in turn, delivering excellent profit for our Phoenix community members.
The FTSE 100, the UK’s premier index, closed the week with a modest decline of 0.26%. Price remains range bound between 7200 and 7750. Should strength return, the next major area of potential resistance is the pivot high from 17 April at 7936. The all-time high is 8047. We continue to monitor this index, waiting for confirmation of direction.
PERFORMANCE REVIEW
Meta Platforms – META
META owns and operates Facebook, Instagram, Threads, and WhatsApp, among other products and services. It is considered one of the Big Five American information technology companies, alongside Google’s parent company Alphabet, Amazon, Apple, and Microsoft.
Our breakout strategy initially entered META in December 2023 following a fresh all-time high. Further positions have been taken as price has moved in our favour. Price has been particularly bullish with a total gain of 38%, resulting in an all-time high of $486 this week.
The total performance to date is a 1,123% Return On Investment, and 22% Return On Capital, applying a full portfolio risk of 2%.
This stock is a good example of a trending stock in a volatile market. The total amount of time required to set up and manage this trade has been less than one hour over two months – this is the benefit of trend trading; using higher time frames such as monthly and weekly charts avoids the noise and stress of shorter time frames. This approach enables busy professionals the freedom to pursue other interests and avoid hours each day in front of a trading screen.
OUTPERFORMING ASSET FOR THE WATCHLIST
Marathon Petroleum Corporation – MPC
Marathon Petroleum Corporation (ticker: MPC) is an American petroleum refining, marketing, and transportation company headquartered in Findlay, Ohio. The company was a wholly owned subsidiary of Marathon Oil until a corporate spin-off in 2011. In 2018, Marathon Petroleum became the largest petroleum refinery operator in the United States, with 16 refineries and over 3 million barrels per day of refining capacity.
MPC is a stock with a history of strong trends such as 2016-2018, and more recently, following the covid pandemic, where price has since gained over 650%. Throughout 2022 price was bullish with a gain of 82%. And the momentum continued into 2023 with a gain of 43%.
On the weekly time frame, price is in an uptrend. Price is trading above both the 50 and 200 SMA, and the Sublime trend filter is green. Commencing in September, price has been in a period of consolidation between $140-160. This month, price has broken out, resulting in an all-time high. Whilst on the daily time frame, price remains above all moving averages and the Sublime trend filter is also green.
A continuation pattern above the all-time high could offer our Phoenix community members an opportunity in a good-performing stock. The next area of resistance is the $200 round number.
Looking Ahead
The bulls remain in control of the US equity markets. We have a large number of positions which are profiting from this momentum. As always, we will let price dictate our next move.
At Sublime, our unwavering commitment lies in conducting thorough analysis based on objective data and factual evidence presented in the charts. By adopting this approach, we aim to provide valuable guidance to our esteemed Phoenix community, collectively exploring opportunities that hold the potential for long-term, profitable trades.
Keep it simple. Keep it Sublime.
The ST Team
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